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Glossary · People and paperwork

Trustee

In short

A trustee is an individual or institution appointed to hold and administer assets for the benefit of another party, known as the beneficiary. They have a fiduciary duty to act in the beneficiary's best interest.

What it means in a deal

You might encounter a trustee if the seller's business assets are held in a trust, or if your personal assets (used for collateral) are in a trust. The trustee's authority to sell or pledge assets will need to be verified by the lender's legal counsel. Ensure all trust documents are readily available.

Common questions about Trustee

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Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.

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